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  • 7/28/2019 Comparison of Jatropha Curcas Profitability to Selected Crops In

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    Journal of Economics and Sustainable Development www.iiste.org

    ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

    Vol.4, No.8, 2013

    141

    Comparison ofJatropha Curcas Profitability To Selected Crops In

    Yatta District, Kenya

    Carol Munini Munyao1, Dr. Fred Muisu

    1,Jacob Mbego

    1, Dr. Nehemiah Kiprutto

    2

    1 School of Natural Resources Management, University of Eldoret PO Box 1125-30100, Eldoret, Kenya

    2 School of Tourism, Hospitality & Events management, Moi University PO Box 3900-30100, Eldoret,

    Kenya

    * Corresponding Author E-mail: [email protected]

    Abstract

    This paper examines the viability of Jatropha curcas production focusing on the economic impacts on

    smallholder farmers in Yatta District. The study employed causal-comparative research design and quantitative

    research method was used where questionnaires were administered to 240 respondents selected through

    multi-stage sampling technique. Gross Margin Calculation was undertaken to compare the profitability of

    Jatropha cultivation to main crops where means of both gross margins were compared using paired sample t-tests

    statistic. It was found that gross margin for Jatropha grown in the three different modes was found to be

    significantly lower compared to pigeon peas and bean. Therefore it is important for farmers to make a balanced

    choice in using their limited land to engage in Jatropha production before proper policies on biofuels are put in

    place to ensure high yields, avoid the risks of poor market conditions and increased consumption of biofuels in

    the country.

    KeywordsBiofuels, Gross Margin Calculation, Jatropha curcas, Kenya, profitability, Yatta District

    1. Introduction

    The current debate on climate change and rising oil prices has generated a great deal of interest in renewable

    energy resources such as biofuels. All developing countries desire to be industrialized including Kenya which

    aspires to be industrialized by 2030 (GOK, 2010). Unfortunately, most of these developing countries have adopted

    the prevailing model in industrialized countries characterized by over-reliance on fossil fuels. However these fuels

    are environmentally malignant and the prices are very unstable and rising (Goldenberg & Johansson, 1995). Liquid

    fuels derived from biomass (herein referred to as biofuels) are emerging as alternative fuels that could help manage

    the problem of the ever-increasing demand of oil thus providing energy security, mitigate the environmental

    problems arising from use of fossil fuels and stimulate rural development in Africa (Yamba, 2007).

    In recent years, the production of Jatropha curcas has been widely promoted by private enterprises,

    non-governmental organizations and development agencies as one of the most viable candidates for biodiesel

    feedstock in Africa. While multiple benefits ofJatropha production such as a petroleum product substitute,

    greenhouse gas mitigation and rural development are emphasized, the viability of production at farm level is

    questioned.

    Jatropha production has been promoted for its perceived economic and ecological advantages. Thus Jatropha

    appears to be the potential crop that enables win-win relationship among all the actors in the value chain the

    biofuel industry to gain profit, society as a whole to achieve GHG mitigation and energy security, and theproducers to improve their livelihoods. Benefit to local farmers in small-scaleJatropha production is based on

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    Vol.4, No.8, 2013

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    the profitability ofJatropha seed production as a farm enterprise. The biofuel industry is interested in Jatropha

    production because it is expected to be less expensive feedstock. Viability ofJatropha production in current

    Kenyan market conditions is by examining the price competitiveness ofJatropha in the market and the

    profitability ofJatropha production as a biodiesel feedstock in terms of expected yield, revenue and opportunity

    cost of production.

    There is therefore an urgent need to determine if it is a rational choice for smallholder Kenyan farmers to engage

    in Jatropha production under the current economic situation. The objectives in this paper are to compare the

    profitability ofJatropha production to selected crops in Yatta District, Kenya focusing on the economic impacts

    on smallholder farmers who engage in the production.

    2. Literature review

    2.1 IntroductionJatropha a member of the Euphorbiaceous family is a plant of Latin American origin but currently widespread

    throughout the tropical regions of the world. It is a drought resistant, perennial plant living up to 50 years,

    relatively fast growing and can achieve a height of three meters within three years under a variety of growing

    conditions (Openshaw, 2000). Jatropha plant is reported to have more than 1600 uses such as soil erosion

    control, climate protection, varnishes, illuminants, soap, organic insecticide and medicine for skin diseases,

    cancer, piles, snakebites, paralysis, dropsy and many more (Henning, 2002). Various parts of the plant have

    medicinal value, its bark contains tannin, the flowers attract bees thus the plant has honey production, the seed

    cake is an excellent source of plant nutrients and its wood and fruit parts are used for fuel. Like all trees,

    Jatropha removes carbon from the atmosphere, stores it in the woody tissues and assists in the build-up of soil

    carbon (Anant, 2008).

    2.2 Comparing profitability of Jatropha curcas to food crops

    Profitability ofJatropha and food crops is compared using GMC a tool used by farmers to help in choosing

    between different farming systems. It is used to help evaluate the competitiveness of growing Jatropha as

    compared to growing other types of subsistent crops. A gross margin of a crop is the difference between the

    gross income earned by the crop and the variable or direct costs associated with it (Abbott and Makeham, 1979).

    For semi-subsistence farmers food security might be more important than gross margins but if a crop has very

    high gross margin, then it is advisable to grow it and buy food from the returns. Therefore ifJatropha has very

    high gross margin than food crops then it can replace them and its returns used to buy food.

    An estimate of costs and returns from cultivation ofJatropha plantations/hedgerows scenarios is crucial to

    analyzing its adoption in rural areas. Costs, as well as returns are involved at different stages of the growing and

    harvesting ofJatropha. For farmers to adopt Jatropha cultivation, the plant must be more profitable than the

    traditional crops farmers are already used to (Van Eijck, 2006). A study done in Tanzania in 2006 indicated that

    Jatropha crop is more profitable than traditional crops such as maize, wheat bananas among others which led to

    high adoption ofJatropha cultivation in Arusha region. Jatropha realized annual revenue of KShs 219,558 per

    acre which was higher compared to maize that produced annual revenue of KShs 22,884 per acre (Van Eijck,

    2006). However, Mitchell (2008) pointed out that Sun Biofuel Company in Tanzania estimated annual Jatropha

    profits to range between 9,720KShs/acre 19,440KShs/acre which is lower than profit estimations of Van Eijck

    (2006). In India, Rao et al. (2006) reported highest revenue ofJatropha per acre per year as KShs 43,800.

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    Profitability ofJatropha is influenced by buying prices and variable costs such as, labor costs in management

    practices undertaken and input costs since they differ in most regions.

    In Kenya, it was reported that revenues from selected cash crops such as mango, green grams and potatoes

    among others were higher than that ofJatropha. Annual gross margin per hectare for green grams was KShs

    16,654, for potatoes it was KShs 101,334 and for mango it was KShs 25,200 while that ofJatropha ranged

    between KShs 10,893 KShs 13,072 (Yuka and Swallow, 2007). Jatropha gross margin in the country is lower

    than most traditional crops hence the low adoption.

    Cost of production ofJatropha is influenced by management practices undertaken and varies greatly with

    authors and regions. According to Van Eijck (2006) the annual costs of production per acre in Tanzania was

    found to be KShs 100 while in India, Rao et al., (2006) indicated it was KShs 1,200. However, Wahl et al.,

    (2009) pointed out that the annual operating costs for one hectare ofJatropha in Tanzania and India were found

    to be approximately KShs 6,073 and while in China to be KShs 12,145. High costs of production reduce the end

    revenues and therefore influencing adoption.

    2.3 Jatropha curcas yields

    Yields fromJatropha have an influence adoption as they directly impact on revenues. High yields lead to high

    revenues and low yields lead to low revenue. Reported yields forJatropha differ worldwide. Openshaw (2000)

    mentions a variation in seed production in monocrop to range between 0.4tonnes/ha/yr to over 12tonnes/ha/yr

    with a number of plants per hectare varying from 1100 to 3300. In addition, Heller (1996) and Jones and Miller

    (1992) summarized Jatropha yields with an even larger variation in seed yield, from 0.1 tonnes/ha/yr to 15

    tonnes/ha/yr. On average, a mature monocrop plantation would yield 4.8tonnes/ha/yr. A Jatropha project in

    Tanzania reported seed yields to be higher with a variation of 5tonnes/ha/yr to 25tonnes/ha/yr or 2kg/plant/yr to

    10 kg/plant/yr. In Mali, whereJatropha was planted as a hedgerow at a spacing of 1m 1m, the reported yield

    was 2.5 tonnes/ha/year and 3.5 tonnes /ha/year (Henning, 2002). Jatropha yields are influenced by climatic

    conditions and management practices.

    In optimal conditions, Jatropha should yield seeds of up to 8tons/ha/yr resulting in oil yields of up to

    2.2tons/ha/yr (Henning, 2006). National Botanical Research Institute (NBRI) in Lucknow came up with a high

    yielding HybridJatropha cultivar in 2006 which would yield up to 17.25tons/ha/yr of seeds at a planting density

    of 2475 trees per hectare and spacing of 2m 2m (PTI, 2007). Improved seed varieties have the potential of

    increasing oil and nut yields.

    2.4 Jatropha curcas markets

    Market availability is one of the key aspects that influence profitability ofJatropha cultivation. Farmers should

    be able to sell harvests to ready buyers or process seeds themselves in order to intensify Jatropha cultivation

    (Tattersall, 2007). In Tanzania, the availability of ready market forJatropha seeds to either Kakute or Diligent

    which are NGOs based in Arusha region has led to more farmers engage in cultivation. Market accessibility and

    availability, market prices and grain bags are important factors to take into account for Jatropha trading

    (Mitchell, 2008).

    To enhance returns ofJatropha produce, it is important to have a complete value chain with manifold

    stakeholders involved and their roles well established. In Tanzania for example, there are NGOs promoting

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    Jatropha cultivation, farmer cooperatives, organizations doing extension services and business support, oil

    extraction plants, buying organizations, and political institutions supporting renewable energies (Mitchell, 2008).

    Mitchell (2008) pointed out that in Tanzania trained women groups on soap production provided substantial

    market forJatropha nuts. KAMA Herbal Products Ltd. a private company run by several shareholders helped to

    market the herbal soaps based on Jatropha oil in the national and international market. In Tanzania mbinga

    region, nuns pressed Jatropha nuts into pure oil for running gensets of a twelve building complex of the

    Vincentian Sisters in Mbinga providing market forJatropha nuts (Muller, 2007). Value chain development

    through increased out-grower schemes can be applied to solve the problem of market unavailability.

    While in Mali higher adoption ofJatropha cultivation in the 90s was attributed to farmers in a small village of

    Simiji trained on how to crushJatropha plant seeds and extracting the oil (Tattersall, 2007). This provided huge

    market forJatropha nuts in Mali and subsequently village residents found a renewable power source that does

    not conflict with the local food supply. Oil from the Jatropha plant powered a small generator and the Simiji

    village was provided with enough power to run 40 streetlights and give 60 families power at night (Henning,

    2006). Availing technology on Jatropha by-products processing to farmers or establishment of accessible

    Jatropha oil extraction plants would increaseJatropha nuts markets thus more revenue.

    3. Study Area

    3.1 Location and size

    Yatta District covers an estimated area of 2497 Km2

    and is located within a latitude of -1.47 (1 28' 0 S) and a

    longitude of 37.83 (37 49' 60 E). The district borders Thika District to the North Western side, Kitui and

    Mwingi districts to the Eastern side, Machakos District to the Southern side, Maragwa District to the North and

    Mbeere District to the North Eastern side. Figure 3.1, indicates the geographical location of the study area inKenya.

    3.2 Climatic conditions

    Yatta district lies in Zone V of the Agro-climatic classification of Kenya. Suffice to emphasize this, most parts of

    Kenya lie in the ASAL zones and they experience perennials droughts, which make it unsuitable for agriculture

    and thereforeJatropha curcas cultivation would be timely since the plant can withstand dry conditions.

    The climate of Yatta district is generally warm and dry during most part of the year except for some torrential and

    erratic rains experienced in the months of March and December. The mean monthly temperature ranges from 290C

    in the coldest months to 36

    0

    C in the hottest months resulting in low or no yields in rain-fed agriculture. Despitethese low yields, agriculture remains an important source of livelihood in the district currently. The topography of

    the district is varied and rises from 500 m above sea level on the southern part of the district to 1200 m above sea

    level in the northern part. There are two rainy seasons, the long and the short rains. The annual average rainfall

    varies from 350-600 mm with high attitude areas receiving more rainfall than low attitude regions. However there

    has been gradual decline of rainfall since 1992 (GOK, 2004).

    3.3 Research design

    This study is descriptive in nature and causal-comparative research design was employed. Both quantitative and

    qualitative research methods were applied. The quantitative research method entailed use of household (HH)

    questionnaires and weighing machine while the qualitative research method entailed in-depth interviews, Focus

    Group Discussions and observations. A systematic and objective approach to the study entailed discussions

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    with supervisors, pre-testing and revision of questionnaires, the execution of the field data collection, data

    coding & entry and analysis as shown in Figure 1.

    3.4 Sampling method

    A multi-stage sampling technique was applied in this study whereby Yatta District was selected purposively since

    it was one of the districts where Jatropha activities were undertaken by promoting agencies. Cluster sampling

    method was employed to select Yatta and Masinga divisions purposively because they had the highest number of

    promoting agencies present. Cluster sampling method was further used to choose four locations randomly in the

    selected divisions. Systematic sampling was used to pick 2 sub- locations from each location whereby first and

    third names were singled out from each list containing the names of sub-locations in a location provided at the

    district resources center giving a total of 8 sub-locations. One village was selected from each sub-location on the

    basis of its location where the east most village was picked. Selection of respondents from each village was done

    through systematic randomly sampling method. Village shopping centers were used as beginning points then

    heading west and following identified village roads or paths households were picked at intervals of five wherebyafter selecting the first household, 5 households were skipped then the sixth household selected as second

    household the process was repeated until 30 households were picked in each of the 8 villages.

    3.5 Data collection

    Primary data was collected using a well structured household questionnaire and in-depth interviews employing

    personal contact with government officials and NGO officials. Hanging weigh scale was used to estimate the

    weights ofJatropha yields per farm while data on variable cost of production of the main agricultural crops in

    the district, costs ofJatropha production and yields forJatropha planted in monocrop and intercrop modes,

    population, socio-economic activities in the district and climatic conditions of Yatta district was obtained from

    secondary sources including government reports, annual reports, research papers, study reports, and books.

    3.6 Hypothesis testing

    Where;

    1 Mean gross margin ofJatropha

    2 Mean gross margins of main crops in Yatta District

    Gross Margin Calculations (GMC) was undertaken to compare the profitability ofJatropha cultivation to main

    crops where means of both gross margins were compared. The wages of permanent workers and depreciation of

    machinery and land cost is normally left out when calculating the gross margins. Calculation of gross margins of

    main crops and Jatropha grown in the three modes of cultivation (hedgerow, intercrop and monocrop) was

    described as;

    Gross margin = Gross income Variable costs

    H0: 1 = 2

    H1: 1 2

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    Where:

    Gross income = Annual yield/tree 15 stocking density

    Average annual yields per tree for different ages were estimated as;

    x = (K/Ji)/n

    Where;

    x - Average yield per tree per year

    K Yields obtained per farm

    J Number ofJatropha trees in the farm

    i Years of growth

    n Number of farmers

    To estimate the gross margin forJatropha the following assumptions were made:

    1. One kilometer ofJatropha hedgerow had a stocking density of 1000 trees2. One acre ofJatropha monocrop farm had a stocking density of 1000trees3. One acre ofJatropha intercrop farm had a stocking density of 1250 trees4. The farm gate price of one kilogram ofJatropha nuts was 15KShs

    Variable costsare costs directly linked to a crop incurred every year of planting and they include cost of seeds,

    spraying, watering, harvesting, packing marketing, storage among others. Yields and costs of production for

    monocrop and intercrop farms were obtained from ICRAF (2008) due to unavailability of information in the

    district. This was so becauseJatropha plants in these farms during data collection were all less than one year old

    and had not fruited in Yatta District. Paired-sample t-test statistic was used to compare gross margin means and

    tables were used to present the results.

    4. Results

    4.1Comparison of profitability of Jatropha curcas with main cropsGross margins obtained from growingJatropha in the three modes of cultivation that is monocrop, intercrop and

    hedgerow was compared with gross margins obtained from major crops in Yatta District. This was achieved by

    providing variable costs, yield produced and revenues obtained for all crops then calculating gross margins.

    4.2 Main crops in Yatta District

    Subsistence crop farming was one of the socio-economic activities related to land use in Yatta District. Maize

    was the commonest crop grown by 86.9% of farmers while 10.4% and 2.7% grew beans and pigeon peas as their

    main crops respectively.

    Maize was mainly grown for consumption purposes because it can withstand the dry conditions and thus assistfarmers in coping with frequent famines. The choice to grow maize was as a result of cultural considerations

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    rather than economic preferences. Maize did not have good market price with a 90-kilogram bag selling at KShs

    900 compared to pigeon peas at KShs 2,000 per 90-kilogram bag and beans at KShs 5,000 per 90-kilogram bag.

    It was found that there was a large variation in the productivity and production costs among the three main crops,

    as exemplified by the gross incomes and variable costs reported in Table 1.

    Variable cost of maize was found to be KShs 4,290 per acre while that of beans was KShs 6,728 per acre and

    lastly pigeon peas were KShs 7,722 per acre (GOK 2006).

    4.3 Estimated cost of Jatropha curcas production

    Variable costs incurred in the production ofJatropha grown as a hedgerow, intercrop and as monocrop over an

    8-year period are provided in Table 2. Monocrop and intercrop data was secondary data obtained from regions in

    the same agro-climatic zone as Yatta district and therefore only used to indicate expected the trends.

    At planting, hedgerow costs were very low at KShs 1,225 compared to reported costs elsewhere for intercrop at

    KShs 6,177 and monocrop costs at KShs 10,314. All the variable costs in the different modes of cultivation

    decreased as the plants matured.

    4.4 Jatropha curcas yields in Yatta District

    Yields reported in Yatta District were significantly lower compared to yields reported in other parts in the same

    agro-climatic conditions in the country. The observed yield per tree at maturity (8+ years) in Yatta District was

    0.125Kg/tree much lower compared to the reported yield of 0.361Kg/tree from other parts of the country asillustrated in Figure 2. The highest observed yield of from year 1 to year 8+ was found to be much lower than the

    highest yields reported under the same agro-climatic conditions.

    Yields in kilograms per tree in the three different modes of cultivation were as shown in Table 3.Jatropha yields

    for monocrop and intercrop were secondary data obtained from ICRAF (2008) reported from other parts of the

    country lying in same agro-climatic zone as Yatta District since that information was not available in Yatta

    District and was therefore used to indicate expected trend. At maturity, monocrop mode of production had the

    highest yields per tree per year at 0.555kg followed by intercrop at 0.165kg and lastly hedgerow at 0.125kg.

    4.5 Gross margin of Jatropha curcas cultivation

    As shown in Table 4, the gross margin forJatropha planted as a hedgerow was negative for the first three years

    of production at KShs - 1225 shillings for the first year after planting and KShs - 104 shillings at year 3 of

    growth indicating that losses were incurred. Positively from year 4, little profits were realized ranging from 330

    shillings to 1625 shillings at maturity.

    No expected profits for monocrop and intercropJatropha farms from planting to maturity assuming yields and

    variable costs reported by ICRAF (2008). The gross margin was negative for monocrop as illustrated in Table 4

    implying that farmers made losses of KShs 10,314 during the first year of growth and KShs 900 after maturity

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    per year. For intercrop, losses made during the first year of growth were approximately KShs 6,617 and KShs

    2,463 losses realized after maturity per year.

    4.6 Comparison of gross margins for main crops and Jatropha

    Gross margin forJatropha grown as an intercrop, monocrop and hedgerow was lower than gross margin of KShs

    2,278 for pigeon peas and KShs 3,272 for beans as indicated in Table 5. Growing Jatropha as monocrop and

    intercrop did not realize any profits as opposed to the main crops.

    Paired t-test statistic indicated that mean gross margin forJatropha when grown in the three different modes was

    found to be significantly lower compared to that of pigeon peas and beans (t = 17.22, p = 0.000). However paired

    t-test statistic revealed that mean gross margin ofJatropha grown as a hedgerow at maturity was significantly

    higher compared to that of maize (t = 0.885, p = 0.385).

    5. Discussion

    5.1 Gross margin of Jatropha curcas cultivation

    Economic viability ofJatropha production is a factor of production cost, yield, and market price. Farmers

    decisions on adoptingJatropha production depend upon the returns that they expect to generate. Gross margin of

    Jatropha was not competitive to cultivation of main crops leading to low adoption levels in Yatta District. The

    comparison ofJatropha revenue with other food crops in Yatta District indicated that the production ofJatropha

    is not a rational option under current economic condition and policy framework. This was as a result of its highcost of production especially for intercrop and monocrop Jatropha farmers and minimal yield and low market

    prices ofJatropha nuts. Under such economical constraints Jatropha is unlikely to substantially increase

    employment and income in rural areas. The shift from food crop to energy crop should especially be avoided in

    semi-arid areas that experience production declines due to unpredictable and unstable rainfall.

    Gross margin of food crops and Jatropha realized in Yatta District was far much lower compared to gross

    margin of maize at 17,200KShs/acre/year and that ofJatropha at 13,200KShs/acre/year reported by Wahl et al.,

    (2009) in Northern Tanzania. This could probably be due to poor climatic conditions in Yatta District compared

    to Tanzania leading to very low yields due to poor management practices, low farm gate prices and lack of

    market facilities leading to very lowJatropha prices.

    Findings from this study agree with Yuka and Swallow (2007) who indicated that Jatropha plant is not

    competitive compared to cash crops such as cashew nuts, mango and maize in addition ICRAF (2008) concur

    with those findings that it is not profitable to grow Jatropha as an intercrop or monocrop in land that would

    otherwise be used for food crops such as maize, beans. Further GOK (2006) agreed that the gross margins of

    maize, beans and pigeon peas are higher than the gross margins ofJatropha in Yatta, Machakos County.

    Considering the amount of attentionJatropha had received in the media, government, and the private sector, the

    results were disheartening. Considering the annual gross margin of KShs 1625 from maturity ofJatropha grown

    as a hedgerow and the negative gross margins obtained when planted as a monocrop or as intercrop implies thatplanting ofJatropha on farms where beans, cow peas or green grams could be grown would be an irrational

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    choice for the farmers. It is important for farmers to make a balanced choice in using their limited land therefore

    farmers would be apt to engage inJatropha production only after proper policies on markets are put in place that

    would be able to avoid the risks of poor market conditions and exploitation by market intermediaries. Cultivation

    ofJatropha hedgerow may provide a supplementary income though the low yields realized would have negative

    implications its profitability.

    5.2 Yields from Jatropha curcas

    A main factor determining the income gained from Jatropha cultivation is the yield influenced by mode of

    cultivation. Jatropha yields grown as a hedgerow realized in Yatta District were too low compared yields

    reported in other parts of the same agro-climatic conditions in the country and from around the world. Although

    it was indicated that optimum yield for hedgerow dry areas in Kenya with no irrigation should be

    2.5tonnes/acre/year at a spacing of 1m 1m (GTZ, 2008), the yields reported in Yatta District at the same

    spacing were significantly low at 0.2tonnes per acre per year. Comparing these yields to India where Prajapati

    and Prajapati (2005) estimated Jatropha yields in rain-fed and irrigated conditions to range from 1.2tonnes/acre/year under rain-fed conditions to 3.2 tonnes/acre/year under irrigated conditions yields in Yatta

    District were minimal. Freim (2008) reported that Jatropha yield varies a great deal from 0.3 kg/tree/year to 12

    kg/tree/year but indicated that average yield should be 6 kg/year/tree under optimum conditions at maturity.

    The decimal performance ofJatropha trees in terms of seed yield was probably as a result of inadequate soil

    moisture content; inadequate soil fertility or poor management practices on the Jatropha farms. From the

    discussion above it is clear that althoughJatropha can grow in marginal areas, seed yields could be dependent on

    soil fertility and management practices among other factors. From the yields obtained it is evident that Jatropha

    will take some time before it becomes a reliable biodiesel feedstock.

    6. Conclusion

    Jatrophacurcas did not produce any profits when planted as a monocrop or as an intercrop and lower profits were

    realized when Jatropha was grown as a hedgerow compared to pigeon peas and beans in Yatta District. In

    conclusion,Jatropha cultivation was not profitable compared to main agricultural crops in Yatta district.

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    Freim, O. L., (2009).How will small scale farmers in Zambia benefit from growing of

    Jatropha?,Norwegian University of Life Science, Department of International

    Environment and Development Studies, Master Thesis, 2008.

    GOK, (2004). Sessional Paper No. 4 of 2004 on Energy. Ministry of Energy,

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    Tables and figures

    Table 1: Estimated annual yields, revenue and variable costs of main crops

    Main cropsAverage yield (90 Kg

    bags/ acre)

    Gross income

    (KShs/acre)

    Variable costs

    (KShs/acre)

    Maize 5 4,500 4,290Beans 2 10,000 6,728

    Pigeon peas 10 10,000 7,722

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    Table 2: Estimated annual variable costs ofJatropha cultivation

    Variable costs per acre in KShs for different cultivation modes

    Age Hedgerow Intercrop* Monocrop*

    1 Year 1,225 6,177 10,314

    2 Years 900 4,407 8,580

    3 Years 275 5,285 7,478

    4 Years 178 4,777 8,154

    5 Years 150 5,227 8,624

    6 Years 130 4,797 8,194

    7 Years 130 5,452 9,197

    8 Years 100 5,472 9,217

    > 8 Years 100 5,472 9,217

    * Source ICRAF (2008)

    Table 3: Estimated annualJatropha yields

    Yields in kilograms per tree for different cultivation modes

    Age Hedgerow Monocrop* Intercrop*

    Year 1 0.000 0.000 0.000

    Year 2 0.009 0.003 0.0004

    Year 3 0.012 0.055 0.016

    Year 4 0.034 0.077 0.022

    Year 5 0.051 0.154 0.045

    Year 6 0.073 0.308 0.089

    Year 7 0.085 0.385 0.111

    Year 8 0.105 0.462 0.134

    >Year 8 0.125 0.555 0.165

    * Source: ICRAF (2008)

    Table 4: Estimated annual gross margin ofJatropha curcas

    Gross margins per acre in KShs for different cultivation modes

    Age Hedgerow Monocrop Intercrop

    Year 1 - 1,225 - 10,314 - 6,617

    Year 2 - 768 - 8,542 - 4,400

    Year 3 - 104 - 6,653 - 4,935

    Year 4 330 - 6,999 - 4,359

    Year 5 614 - 6,314 - 4,392

    Year 6 964 - 3,574 - 3,127

    Year 7 965 - 3,422 - 3,365

    Year 8 1,625 - 2,288 - 2,968

    >Year 8 1,625 - 900 - 2,463

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    Table 5: Comparison of annual gross margins of main crops withJatropha

    Crop Gross margins in KShs/acre

    Maize 210

    Beans 3,272

    Pigeon peas 2,278

    Jatropha (Hedgerow at maturity) 1,625

    Jatropha (Intercrop at maturity) - 2,288

    Jatropha (Monocrop at maturity) - 2,968

    Figure 1: A schematic diagram of the research design

    GMCExcel sheetsSPSS

    Hypothesis testing

    Secondary dataPrimary data

    InternetInstitutionsPublicationsInterviewsObservation

    WebsitesReportsJournalsBooksHHFarm

    Respondent selection

    Sampling

    method

    Data

    type

    Data

    retrieval

    methods

    Research

    tools

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    Figure 2: Comparison of annual Jatropha yields reported in Yatta District to yields from other parts of

    the country in the same agro-climatic zone

    0.000

    0.050

    0.100

    0.150

    0.200

    0.250

    0.300

    0.350

    0.400

    Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8+

    Kilogramspertree

    Age

    Yatta Yields Reported low Reported High